We Owe You a Debt of Platitude

Range of green credit cards offer carbon offsets for purchases 7

Major banks in the United States last year started offering green credit cards that use about 1 percent of the amount of customers' purchases to offset their emissions. So far, the cards seem to be taking off, benefiting credit card companies and, arguably, the planet. The cards come complete with hokey names like GreenPay MasterCard, GE Money Earth Rewards MasterCard, and Brighter Planet Visa. As customers spend, no doubt on eco-friendly purchases, they accumulate points toward offsets or carbon-mitigation projects. The going rate is roughly one ton of carbon offset for about $1,000 in credit card purchases. Green credit cards have earned scorn from some critics who argue they foster the illusion that a few offsets will solve the world's environmental woes and encourage carbon frivolity. But credit card execs disagree, saying the cards are just one more way consumers can lighten the planet's environmental load. "We don't pretend to be the only answer," said Bank of America's Michael Rhodes.

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  1. DJ Marmot Posted 5:58 am
    06 Feb 2008

    How About This?How about if we just keep using the same credit cards we always have instead of those that do SOMETHING, although from what I gather from your summary, that something is virtually worthless and scornworthy.  
    Wake up.  Leave out the loaded language like "The cards come complete with hokey names like..." and the jusgemental puns about platitude and start educating us.  
    People have taken steps here to toward progress, and rather than recognize that, you mock it and discredit it.  I'd like to use a card like this, but I can only infer these programs are not ready for my patronage.  Was that your intent?

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  2. secondlaw Posted 6:05 am
    06 Feb 2008

    Green Credit Cards?I think credit/atm cards should be outlawed. Think how much energy it takes to maintain the satellite links, the manufacturing of the cards, the bank statements, the fuel to move the workers to the payment centers, the electricity used to keep the system operational, the paper used to send the statements, the future resources needed to pay the interest back and other energy costs et al. Paper money is the best way to handle our financial needs. The whole plastic credit system needs to be scrapped now. Think about how many barrels of oil it takes to prop up this stupid idea. Think about all of the money that can be saved. The system is flawed.

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  3. Wolverine Posted 8:59 am
    06 Feb 2008

    A Truly Green Credit CardI use Salmon Nation from ShoreBank Pacific in Seattle.  I switched from the Working Assets card, because MBNA bought their contract and MBNA is a really evil right wing bank that I don't want to support.  ShoreBank is progressive for a bank and supports local communities and the environment, unlike big banks.  A percentage of purchases with this card goes toward environmental causes.  Check it out:

    http://www.salmonnation.com/growsn/snvisa.html

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  4. marcus goodfellow Posted 2:40 pm
    06 Feb 2008

    Thanks WolverineThanks for the clue to a bank that is worth getting a credit card from. I don't want many of the "green cards" that are becoming available because they are still supporting big business and banks that are only interested in squeezing more money out of people and pulling ridiculous financial highjinks.

    Some basic math, credit cards offer a 1% "green" reward, then charge the business 2+% in fees, then charge you interest on your account, unless you pay it off monthly (in which case you're in the vast minority of Americans these days.)Probably it would be better just to buy your own carbon offset and try to use a credit card as little as possible. Most of the 1% rewards are just lures that cost you and the businesses forced to accept  your choice of a credit card form of payment more money in the long run. While I don't harbor any love fo Walmart, I don't shop there, and don't care how much chase or cit gouge them for. I don't feel the same way about my choices in green companies.

    If you you're thinking of getting any credit card, green or otherwise, also look to see what the penalties are. Do the interest rates jump from 9% to 28% if you miss a payment? Is the late fee approaching $40? While "life takes VISA" these days it seems VISA does not put up with much from life. If my interest rate jumps 10% will my carbon offset "reward" increase too? Sad, since we are the customers. Small and local will almost always be a better bet, even if the local bank doesn't send a pretty 4 page, 4 color flyer junk mailer to your door on a monthly basis to tell you about the new "green" card.  

    Green choices are often pricier alternatives than conventional choices and using a credit card at all forces those prices higher because of the service fees charged by even the greenest of banks. Most small companies still accept CASH!(Sigh, remember when cash was king.) I like to pay for things these days with my "green"backs...Sorry, couldn't help myself.

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  5. emily wheeler Posted 2:49 am
    07 Feb 2008

    makes purchases a little greenerFull disclosure: I work for Brighter Planet. You certainly don't need a credit card to protect the environment, but if you have one anyway, ours will invest in renewable energy projects. They are projects that wouldn't have been built without this funding, like the wind turbine erected at the Wray School in rural Colorado last week.wray project
    We don't pretend to be the only answer. Our company started in Middlebury, Vermont after we came up with this idea in an environmental economics course. If you'd like to hear our founders - a student in the class (Andy Rossmeissl) and the professor (Jon Isham) - talk about the role of carbon offsets in the overall fight against climate change, check out the podcast of the conference call we held last night with a few environmental bloggers. Call with Jon Isham and Andy Rossmeissl
    Thanks!

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  6. 2wheeler Posted 6:25 am
    07 Feb 2008

    green(washed?) cards not yet ready for prime timeHow sad to hear that Working Assets card "contract" is for sale to less green/ethical bank vendors to provide the actual service.
    The GE green energy credit card rolled out last year sounded nice with its windmill logo on the front-- but after reading what I could find of the fine print... I was underwhelmed both at the low numerical rate of actual green energy investment dividends my patronage would yield, and the apparent lack of transparent accountability by an independent third party (such as Green-E certification) for any green projects/investments.  
    Did I say independent?  GE's got their hands in everything including the means of production, so I actually saw this potential "green rebate" being used to most likely enhance GE's other divisions own corporate bottom line on the green products/sales side.  With even greater PR benefits accruing to GE than that.  The very real likelihood of double-counting, as I'm sure GE would take credit for their own expenses (and revenue for other profit taking) for any reporting on their corporate social responsibility efforts.
    Basically I think GE wants to have its interest-bearing credit card cake and eat it too, with this greenwashing sales effort.  It's the corporate american way, I guess...
    Informed consumers and investors need still more complete and validated, transparent means of making such ethical investments, such as the Green-E certified projects and the carbon offset market is starting to offer.  Otherwise there remains a huge potential for double and triple counting of the meager investments being made on our behalf at this time.
    Recall that Exxon-Mobil made a record $43 trillion in profit in 2007.

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  7. Wolverine Posted 10:04 am
    07 Feb 2008

    Working Assets Did Not Sell Its ContractWorking Assets had no choice in the matter according to the people there to whom I talked.  It was bought by MBNA without any choice in the matter by Working Assets.  The financial system is stacked so that the rich bankers can do what they want; the more money and bigger the company, the more freedom it has to screw over everyone else.
    Marcus,

    I can't speak for other cards, but Working Assets and Salmon Nation donate 3% of your purchases.

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